John Fleming on Tax Reform

No new taxes; support the Fair Tax

Americans dread April 15th, Income Tax Day. The income tax code is so complex that even the IRS cannot accurately explain it.

Tax reform ought to be a national economic imperative. I signed the Americans for Tax Reform's Taxpayer Protection Pledge.
I have committed in writing that I will not increase marginal tax rates, or vote for any new taxes whose net result is that Americans pay more in taxes.

I strongly support the concept of the Fair Tax. The Fair Tax will abolish the federal income tax
and the IRS. April 15th will become just another beautiful spring day!

The Fair Tax will replace the income tax, corporate taxes, capital gains taxes, and estate and inheritance taxes with a national sales tax. I do not favor and will not support a
sales tax and the current income tax. My political opponents may make that charge, but do not let them confuse you. My position is clear: Abolish the Income Tax. Replace it and all other federal taxes with the Sales Tax.

Replace income tax & employment tax with FairTax.

Imposes a national sales tax on the use or consumption in the United States of taxable property or services.

Sets the sales tax rate at 23% in 2011, with adjustments to the rate in subsequent years.

Allows exemptions from the tax for property or services purchased for business, export, or investment purposes, and for state government functions.

Prohibits the funding of the Internal Revenue Service (IRS) after FY2013.

Establishes in the Department of the Treasury: (1) an Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and (2) a Sales Tax Bureau to administer the national sales tax.

Terminates the sales tax imposed by this Act if the Sixteenth Amendment to the U.S. Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this Act.

Taxpayer Protection Pledge: no new taxes.

Fleming signed Americans for Tax Reform "Taxpayer Protection Pledge"

Politicians often run for office saying they won't raise taxes, but then quickly turn their backs on the taxpayer. The idea of the Pledge is simple enough: Make them put their no-new-taxes rhetoric in writing.

In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. While ATR has the role of promoting and monitoring the Pledge, the Taxpayer Protection Pledge is actually made to a candidate's constituents, who are entitled to know where candidates stand before sending them to the capitol. Since the Pledge is a prerequisite for many voters, it is considered binding as long as an individual holds the office for which he or she signed the Pledge.

Since its rollout with the endorsement of President Reagan in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts.

No European-style VAT (value-added tax).

Whereas a value-added tax (VAT) is a type of sales tax that is assessed on goods at every stage of production;

Whereas a VAT is a hidden tax that is ultimately passed along to consumers, but is embedded into the price of goods and services and therefore not transparent to the consumer;

Whereas the average tax burden levied by the Federal Government since 1980 has been 18% of GDP;

Whereas, within the next 15 years, Federal taxes are projected to rise to the highest level in US history;

Whereas adding a VAT on top of the existing Federal income tax would increase the burden on United States taxpayers to unprecedented levels;

Whereas the average VAT rate in Europe has risen from 5% when the tax was first introduced in the 1960s to 20% today;

Whereas European countries that have imposed a VAT have seen their total tax burden rise to an average of over 40% of GDP;

Whereas such high levels of
taxation and spending crowd out private investment, which stifles economic growth and leads to chronically high levels of unemployment;

Whereas the IRS has calculated that US taxpayers spend approximately $200 billion and 7.6 billion hours a year to comply with Federal tax laws;

Whereas a VAT would only add another layer of complexity and compliance costs to a fundamentally unsound tax system;

Whereas the burden of a VAT would fall most heavily on low-income and middle-class Americans; and

Whereas a VAT would do nothing to restore fiscal accountability in Washington, but would simply bankroll wasteful and inefficient Federal Government spending:

Now, therefore, be it Resolved, That--

It is the sense of the House of Representatives that imposing a value-added tax would be a massive tax increase that would cripple families on fixed income and only further push back the US economic recovery; and

Permanently repeal the estate tax.

H.R.143: Effective for estates of decedents dying after December 31, 2010, chapter 11 of subtitle B of the Internal Revenue Code of 1986 is repealed.

H.R.177: Subtitle B of the Internal Revenue Code of 1986 (relating to estate, gift, and generation-skipping taxes) is hereby repealed.

OnTheIssues Explanation: At the end of 2010, the temporary one-year suspension of the estate tax ended. This bill proposes to make it permanent, with zero exemption. The "exemption" means the amount one can inherit without taxation. In 2009 the rate was 45% and the exemption amount was $3.5 million. On January 1, 2010 a "one year repeal" of the tax was effectuated by a temporary, one-year-only rate of 0%. On January 1, 2011 the estate tax is scheduled to a top rate of 35% and the exemption amount is scheduled to be $5 million, or $10 million for married couples.

Supports the Taxpayer Protection Pledge.

[The ATR, Americans for Tax Reform, run by conservative lobbyist Grover Norquist, ask legislators to sign the Taxpayer Protection Pledge in each election cycle. Their self-description:]

In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. Since its rollout in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts. Today the Taxpayer Protection Pledge is offered to every candidate for state office and to all incumbents. More than 1,100 state officeholders, from state representative to governor, have signed the Pledge.

The Taxpayer Protection Pledge: "I pledge to the taxpayers of my district and to the American people that I will: ONE, oppose any and all efforts to increase the marginal income tax rate for individuals and business; and TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar
for dollar by further reducing tax rates."

Opponents' Opinion (from wikipedia.com):In Nov. 2011, Sen. Harry Reid (D-NV) claimed that Congressional Republicans "are being led like puppets by Grover Norquist. They're giving speeches that we should compromise on our deficit, but never do they compromise on Grover Norquist. He is their leader." Since Norquist's pledge binds signatories to opposing deficit reduction agreements that include any element of increased tax revenue, some Republican deficit hawks now retired from office have stated that Norquist has become an obstacle to deficit reduction. Former Republican Senator Alan Simpson, co-chairman of the National Commission on Fiscal Responsibility and Reform, has been particularly critical, describing Norquist's position as "no taxes, under any situation, even if your country goes to hell."